U.S. Senator Bill Cassidy, M.D. (R-LA), the ranking member of the Senate Health, Education, Labor, and Pensions (HELP) Committee, has introduced new legislation aimed at preventing asset managers from prioritizing environmental, social, and governance (ESG) factors over financial returns in Americans’ retirement savings.
The proposed bill, named the Restoring Integrity in Fiduciary Duty Act, seeks to counter a 2022 rule by the Biden-Harris Department of Labor. This rule permits asset managers to consider ESG factors when selecting investments for their clients, even if these choices result in lower financial returns. Cassidy’s legislation mandates that investment decisions be based solely on financial outcomes.
“Asset managers should prioritize helping Americans achieve the best return for their retirement, not funneling their clients’ money to fund a left-wing political ideology,” said Dr. Cassidy. “This legislation protects 152 million Americans who depend on a strong retirement to live after their career is over.”
Cassidy has previously expressed concerns that the Biden-Harris ESG rule could enable left-wing activists to introduce Boycott, Divestment, and Sanctions (BDS) policies into retirement plans with an aim to harm Israel.
Last year, Cassidy collaborated with U.S. Senator Mike Braun (R-IN) to introduce a Congressional Review Act (CRA) intended to overturn the ESG rule. The CRA received strong bipartisan support in Congress but was vetoed by President Biden.
For further details on this legislative proposal or other updates from HELP Republicans, visit their website or follow them on Twitter at @GOPHELP.
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